On Holding Stock Price Surge Predicted to Hit $45 Amid Record Sales
Friday, 17 May 2024, 07:05
Record revenue for ONON
On Holding reported record quarterly sales that jumped nearly 30% year over year in the first quarter. Management sees at least 30% sales growth for the full year. Importantly, its direct-to-consumer (DTC) sales are becoming a larger portion of the business, and that's helping to drive gross profit margin higher.
Analyst Bullish on Sales Surge
- Strong Quarterly Performance: Analyst's optimism driven by product mix gains in DTC and efficient inventory management, leading to exceeding analyst expectations in Q1.
- Bullish Price Target: Needham analyst raises price target to $45, projecting a 25% increase from recent stock close.
- Potential for Growth: Despite high P/E ratio above 40, company's emphasis on sales growth and profitability could drive stock price to the projected level.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.